Trump’s election win drove Bitcoin to record highs — what his presidency could mean for crypto going forward
News of Donald Trump’s election win sent Bitcoin soaring to record highs after he rebranded himself as a pro-crypto candidate on the campaign trail.
Over the past year, Trump has advocated for a national bitcoin reserve and growth in the bitcoin mining sector, and even rolled out a new crypto business in September. (About 75 per cent of the revenue is said could go to the Trump family, although they assume no liability).
After his election, he named his billionaire sidekick,Elon Musk, one of the heads of his new Department of Government Efficiency (DOGE) — an unmistakable ode to Musk’s favourite meme cryptocurrency, dogecoin — and he’s now reportedly considering the creation of a White House crypto-policy role.
During Friday trading, Bitcoin breached the US$99,000 mark as the rally continued, according to CoinMarketCap.
The question on everyone’s mind now is: will the momentum last?
Paul Pincente, vice president of digital assets at Canadian investment firm, Purpose Investments, believes this rally could be different from past cycles.
“While previous rallies were often speculative bubbles, this cycle is marked by stronger fundamentals, including increased adoption, enhanced infrastructure and a pivot in global regulatory sentiment,” Pincente wrote in an email.
However, even though the industry anticipates more crypto-friendly regulations moving forward, some experts remain cautious.
“We consider (Bitcoin) amongst the riskiest of asset classes that you can possibly invest in, with or without an ETF,” warned Daniel Strauss, director of ETFs and financial products research at National Bank of Canada Financial Markets, noting the cryptocurrency routinely has 80 per cent drawdowns in its value.
“That has happened several
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